Ford Strama Final
Ford Strama Final
Mendiola,Manila
20152016
StrategicManagement
TRANSPORTATIONSERVICES:
FORDMOTORCOMPANY
Oyzon,Paolo
Realiza,JohnBelle
Tingao,Nurwayda
Tubay,BernadethB.
Tugade,AnnaPatriciaP.
TABLEOFCONTENTS
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
INTRODUCTION
RESEARCHDESIGNANDMETHODOLOGY
COMPANYSVISIONANDMISSION
MissionandVision
Evaluation
Recommendation
Values,BusinessStrategyandObjectives
EXTERNALANALYSIS
Sociocultural,Demographic,andEnvironmentalForces
TechnologicalForces
EconomicForces
Political,Governmental,andLegalForces
INDUSTRYANDCOMPETITIVEANALYSIS
IndustryAnalysis
PortersFiveForcesFramework
Competitors
CompetitiveProfileMatrix(CPM)
EXTERNALFACTOREVALUATION(EFE)
Opportunities
Threats
INTERNALANALYSIS
Management
SalesandMarketing
Operations/Production
ResearchandDevelopment
FinanceandAccounting
ManagementInformationSystems
INTERNALFACTOREVALUATION(IFE)
Strengths
Weaknesses
STRATEGYFORMULATION
TOWSMatrix
StrategicPositionandActionEvaluation(SPACE)Matrix
InternalExternal(IE)Matrix
BostonConsultingGroup(BCG)Matrix
TheGrandStrategyMatrix
SummaryofStrategyFormulationTools
QUANTITAIVESTRATEGICPLANNINGMATRIX(QSPM)
OBJECTIVES,STRATEGYRECOMMENDATION,ANDACTIONPLANS
StrategicObjectives
RecommendedBusinessStrategies
TheStrategyMap
DepartmentalPrograms
XII.
XIII.
STRATEGYEVALUATION,MONITORING,ANDCONTROL
BalancedScorecard
FinancialPerspective
CustomerPerspective
InternalBusinessPerspective
LearningandGrowthPerspective
FINANCIALPROJECTIONS
3YearIncomeStatementsProjection
REFERENCES
APPENDIX
I.
INTRODUCTION
FordMotorCompany,anAmericanmultinationalautomaker,wasestablishedand
incorporatedbyHenryFordonJune16,1903.Itmanufacturesandsellscommercial
vehiclesundertheFordbrand,andmostly,luxurycarsundertheLincolnbrand.The
transportationcentered company spearheaded largescale production of cars and
managementofanindustrialworkforcethroughengineeredmanufacturingsequencesas
characterizedbymovingassemblylines,whichbackthen,wascalledFordismin1914.
Laterthatyear,itrananinhousepartproductioninaverticalintegration.Duringthe
year2010,Fordrankedhighindifferentpositions:2ndinLargestU.S.basedautomaker,
5thintheWorldbasedVehicleSalesandintheLargestAutomakerinEurope,and8 thin
OverallAmericanbasedCompanyin2010FortuneList.
Withitsfulfillingsuccess,ithasproducedmassivelyindifferentcornersoftheworld.
It markets primarily in Saudi Arabia, Kuwait and in United Arab Emirates. The
corporationalsooperatesinNorthAmerica,Europe,Oceania,EastandSoutheastAsia,
SouthandWestAsia,SouthAmerica,andinAfrica.Additionally,ithasmanagedto
expanditsbusinessbyexploringoptionsofmanufacturingnotonlyusualautomobiles,
butalsotrucks,buses,tractors,automotivecomponents,andfinancialcreditingservices.
Financial reports in 2014 of Ford Motor Company, having a $7.4 billion spending,
claimedithasgenerated$135.8billionautomotiverevenue,gaininga3.9%automotive
operationmargin,whileobtaininga$3.6billionoperationrelatedcashflow.Itstateda
$1.9 billion credit pretax profit, and total company pretax profit of $6.3 billion.
Moreover,thecompanydisclosesatotalassetsizeamountingto$208,527,000andtotal
shareholdersequityof$24,805,000inits 2014financialstatements.Thecorporation
providesbenefitstoapproximately187,000employees.
FordMotorCompanyisfacingdifficultyinfurnishingreturnoninvestments,despite
havingrelativelyhighcashinflow.ItsoperationsinEurope,Indonesia,andJapanare
ineffectivelymanagedleadingtoclosureandretrenchment.Theorganizationisnotonly
affectedbyitsusualexternalfactors,butalsobythenatureandslow growthofthe
transportationindustry.
II.
RESEARCHDESIGNANDMETHODOLOGY
III.
VISIONANDMISSIONSTATEMENT
VisionStatement
People working together as a team, global enterprise to make peoples lives
betterthroughautomotiveandmobilityleadership.
MissionStatement
ONEFORD:OneTeam.OnePlan.OneGoal.
OneTeam:Peopleworkingtogetherasalean,globalenterpriseforautomotive
leadership, as measured by: Customer, Employee, Dealer, Investor, Supplier,
Union/Council,andCommunitySatisfaction.
OnePlan:Aggressivelyrestructuretooperateprofitablyatthecurrentdemand
andchangingmodelmix;Acceleratedevelopmentofnewproductsourcustomerswant
andvalue;Financeourplanandimproveourbalancesheet;Worktogethereffectivelyas
oneteam.
OneGoal:AnexcitingviableForddeliveringprofitablegrowthforall.
VisionStatementEvaluation
Parameter
Yes/No
Why?
Isitinspirational?
Yes
MissionStatementEvaluation
Parameters
Yes/No
1. Customers
Yes
Peopleworkingtogetheras
alean,globalenterprisefor
automotive leadership, as
measuredby:Customer...
2. ProductsandServices
Yes
Acceleratedevelopmentof
newproductsourcustomers
wantandvalue
3. Markets
Yes
Acceleratedevelopmentof
newproductsourcustomers
wantandvalue
4. Technology
Yes
Peopleworkingtogetheras
alean,globalenterprisefor
automotiveleadership
Aggressively restructure to
operateprofitably
Finance our plan and
improve our balance
sheet
An exciting viable Ford
deliveringprofitablegrowth
forall.
6. Philosophy
Yes
7. Selfconcept
Yes
Peopleworkingtogetheras
alean,globalenterprisefor
automotiveleadership
8. Concernforpublicimage
Yes
CommunitySatisfaction
9. Employees
Yes
Peopleworkingtogetheras
alean,globalenterprisefor
automotive leadership, as
measuredby:Employee
Recommendations
RecommendedVision
People working together as a team, global enterprise to make peoples lives in the
millennialbetterthroughautomotiveandmobilityleadership.
ThenewvisionnowhasaclearindicationonwhenFordseesitselftohaveateam
thatworkstogethertomakepeopleslivesbetterthroughtheirautomotiveandmobility
leadership.Thevisionnowmainlywantstomakethecurrentgenerationbetter.
RecommendedMission
Thereisnorecommendedmission.
BusinessStrategyandObjectives
Fordworkstowardtheirvisionbyofferingvarietyofproductswithbestinclass
quality,fuelefficiency,safetyandsmartdesignthatwouldfittoanypersonsneedor
want.Theyalsomaintainabalancedportfolioofproductsandmakesurethattheyhave
globalpresence.Morethanthat,theyarealsocreatinglongtermconsumerandemployee
valuebycreatingagreenstrategythatisaimedtowardthenaturalenvironmentand
taking into consideration every dimension of how a business operates in the social,
cultural,andeconomicenvironment,thustheBetterWorld.ThekeyelementstoFords
sustainabilitystrategyincludethefollowing:
o Participation in sciencebased climate strategy, greenhouse gases
stabilizationintheatmosphere,bymakingittheirabsolutereductiongoal
thatspanstheirproductsandfacilities.
o Theirgoalistomakemobilityaffordableineverysenseoftheword
economically, environmentally and socially and to provide seamless
mobilityforall.
o Theyhaveadoptedacomprehensivewaterstrategythatcorrespondstothe
key elements of the CEO Water Mandate and is based on five key
platforms designed to effect substantial, sustainable and measurable
impacts.
IV.
EXTERNAL ANALYSIS
Manygovernmentalstandardsandregulationsrelatingtosafety,fueleconomy,
emissions control, noise control, vehicle recycling, substances of concern, vehicle
damage, and theft prevention are applicable to new motor vehicles, engines, and
equipmentmanufacturedforsaleintheUnitedStates,Europe,andelsewhere.Inaddition,
manufacturingandotherautomotiveassemblyfacilitiesintheUnitedStates,Europe,and
elsewherearesubjecttostringentstandardsregulatingairemissions,waterdischarges,
andthehandlinganddisposalofhazardoussubstances.
V.
Industry Analysis
Inthepastyears,theautomotiveindustryhasbeenexperiencingrelativelystronggrowth
andprofitability.Continuousgrowthishardtoachievebecausetherearesomanychallengesthat
arebeingfacedbytheindustry.Theunevennessofglobalmarketsisconsideredtobethemain
challengefortheindustry.
Thegrowthforecastatthegloballevelin2015isamere2.1%comparedtothegrowth
rateof3.1%between2007and2014.Ontheotherhand,thereisahealthierexpectedreturnin
2016and2017of5.1%and4.7%,respectively,ascrisismarketsstabilizes.
Growthamongdifferentcountries seemstobe verydifferent fromeachother.Asian
countrieslikethePhilippinesiscontinuouslyexperiencinggrowthinsales,mainlybecauseof
continuousattractivemarketingeffortsandflexiblefinancialoptionswhileIndiasautoindustry
is both doing good in their domestic sales and export sales. However, growth in China has
slowed,therehasbeenstockturmoilandrisingofinventorywhichleftfinancialstainondealers
thatledtofactoryshipmentsslowdown.Ontheotherhand,Europecontinuesonitsrecovery
journey generally low credit and financing rates, low fuel prices, improving employment
expectationsandonslaughtofnewattractiveproducts.Meanwhile,salesinNorthAmericaarehot
duetothecontinuanceofnearhistoriclowsinfinancialrateswhileSouthAmericacontinuousto
strugglethroughrecessionandsaleshaveexperiencedthesteepestdeclineinsalessince1998.
Thisshowsthatautomobileindifferentcountrieshaveverydifferentgrowthfromeachotherand
thusmakingithardtostabilizetheoverallgrowthoftheautomotiveindustry.
Additionally,theworldwideautomotiveindustryisgreatlyaffectedbygeneraleconomic
conditions on which the industry has very little control over. The purchase decisions of
consumersaresignificantlyaffectedbyslowingeconomicgrowth,geopoliticalevents,andother
factorssuchasthedurabilityofvehiclesinwhichconsumerswillhavelatitudeindetermining
whetherandwhentoreplaceanexistingvehicle,andofcourse,thechangingpreferencesof
consumers,andtheexistenceofotheralternativessuchasUber,GrabTaxis,electriccars,water
fueledcarsandothers.Whilethesealternativesexist,itisalowthreattotheautomotiveindustry.
Theindustryisundeniablyhugeasitconsistsofmanyproducersbutwithnosingle
dominantproducer.ThekeycompetitorswithglobalpresenceincludeFordandLincoln,Flat
Chrysler Automobiles, General motors Company, Honda Motor Company, HyundaiKai
Automotive Group, PSA Peugeot Citroen, RenaultNissan B.V., Suzuki Motor Corporation,
ToyotaMotorCorporation,andVolkswagenAGGroup.
Competitors
Graph1
2010
20
2011
15
2012
10
2014
2013
5
0
Source:WardsAuto
Graph2
Ford
GM
Toyota
2010
20.00%
2011
15.00%
2012
10.00%
2013
2014
5.00%
0.00%
Ford
-5.00%
GM
Toyota
-10.00%
Source:YCharts,Inc.
Graph1showsthemarketsharesofFord,GMandToyotaintermsofsales.GM
experiencedthehighestsales consistentlyfrom2010to2014whereas Toyotaisconsistently
earningbutlowerthanGMandFord.Ford,however,experiencedasequentialdeclinefrom2011
to2014.
Ford,GMandToyotaarejustfewofmanycompaniesthatpursuemassstrategy.
Massstrategyincludestheloweringofsellingprice,reducingthemanufacturingcostpervehicle
byincreasingvolume.
InGraph2,itisapparentthatToyotaisthemorestableonewhenitcomestogross
profitmarginthisisbecauseToyotaisknowntobetheparagonofleanproductionandhaslow
inventoryproductdemand.Ford,however,seemstobethemostfluctuantandnotstablewhile
GMissomewhatdoinggoodevenwiththenegativegrossmarginin2012.
CompetitiveProfileMatrix
CPMisatoolthatcomparesthefirmanditsrivalsandrevealstheirrelativestrengths
andweaknesses.
FORD
CPMTable
CriticalSuccessFactor
TOYOTA
GENERAL
MOTORS
Weight
Rating
Score
Rating
Score
Rating
Score
1.BrandReputation
0.12
0.36
0.48
0.24
2.FinancialPosition
0.08
0.24
0.32
0.16
3.GlobalExpansion
0.11
0.22
0.44
0.33
4.ProductQuality
0.10
0.30
0.40
0.20
5.MarketShare
0.14
0.28
0.56
0.42
6.FuelEfficientVehicle
0.09
0.27
0.36
0.18
7.CustomerLoyalty
0.10
0.40
0.30
0.20
8.InnovativeCulture
0.09
0.27
0.36
0.18
9.ProductDesign
0.10
0.30
0.20
0.40
10.SuccessfulPromotions
0.07
0.21
0.28
0.14
TOTAL
1.00
2.85
3.70
2.45
TheCPManalysisrevealsthatthestrongestplayerintheindustryisToyotawith
relativestrengthinbrandreputation,financialposition,globalexpansion,productquality,
marketshare,fuelefficiency,innovativeculture,andsuccessfulpromotions.Ontheother
hand,Fordprevailsincustomerloyaltyandisdoingwellwithotheraspects.General
Motorsistheweakestofthemallhavingonlyarelativestrengthinproductdesign.The
companies should improve their ratings by creating strategies that would make their
weaknessesintostrengthswhilemaintainingtheircompetitiveadvantage/s.
AccordingtoaCarBrandPerceptionsurveyin2014with1,578participantsthat
hadatleastonecar,ToyotaledintheoverallbrandperceptionwithFordinthesecond
place and General Motors Chevrolet and Cadillac in the fourth and ninth place,
respectively.Theresultwasbasedonfactorssuchasquality,safety,performance,value,
fueleconomy,design/style,andtechnology/innovation.Onquality,fuelefficiency,and
innovativecultureToyotaisleadingwhileFordandGeneralMotorsChevroletfollow.
Ontheotherhand,GeneralMotorsCadillacandChevroletleadinproductdesign.
VI.
Weight
Rating
W. Score
.24
.60
the .10
.30
.10
.20
.08
.24
.15
.15
.10
.12
.16
.10
OPPORTUNITIES
TOTAL
1.00
2.21
FordsExternalFactorEvaluation,EFE,comprisesofopportunitiesandthreats
that used to assess their current industry condition. These will help to evaluate the
differentexternalfactorssuchaseconomic,social,cultural,demographic,environmental,
political,governmental,legal,technological,andcompetitivefactorsthatcanaffectthem.
Also,tovisualizeandprioritizetheopportunitiesandthreatsthatFordsfacing.Through
identifyingopportunitiesandthreatswithintheindustry,Fordcanmeasurehowwellthey
are responding to the key factors. Each factor is assigned a weight according to
importance.Zeromeansnotimportant.Onemeansthatthefactoristhemostsignificant
andcriticalone.Theentireweightstogethershouldequal1.Eachfactoristhenrated
accordingtohowwellFordisrespondingtothatfactor.Eachopportunities,mustberated
as4(superiorresponse)or3(aboveaverageresponse),andeachthreatsmustberatedas
a1(poorresponse)or2(belowaverageresponse).Multiplyeachfactorweightwithits
ratingtogiveaweightedscore,andaddallweightedscoresforeachfactortocompute
thetotalweightedscoreofFord.FordweightedEFEscoreis2.21whichisjustlower,
butadjacent,totheaverageweightedscoreof2.5whichshowsthattheycanexploitmore
onopportunitiesanddomoretocircumventexternalthreats.
FordcantakeadvantagethestrongdriveofacquiringacarinthePhilippinesby
penetratingthemarket.Combinationwithadifferentcompany,Cisco,whichspecializes
innetworking,maybeofagreathelpinimprovingthemarketstrategy.Despitebeing
oneofthelargestautomakersintheindustry,Fordlacksincompetingwithotherplayers.
ForddidnothavepublictrustwhileothercompanieslikeGMandToyotaaregaining.
Becauseofvaryingoilprices,Fordmustmakeastudywheretheywillproducecarsthat
usenondieselfueledcar.
VII.
INTERNALANALYSIS
VIII. INTERNALFACTOREVALUATION(IFE)MATRIX
Key Internal Factors
Weight
Rating
W. Score
.30
.27
.15
.10
.40
.13
.52
6. Customers Loyalty
.10
.40
.10
.10
.08
.08
.12
.24
.10
.10
.10
STRENGTH
WEAKNESSES
2.66
FordsInternalFactorEvaluation,IFE,consistsof6strengthsand5weaknesses
in the functional areas of the business. These provide a basis for recognizing and
assessingrelationshipsamongtheseareas. Oncestrengthsand weaknessesparticularto
Fordscompanyarespecified,everyfactorisweightedaccordingtoimportance.Each
strengthmustberatedasa4(majorstrength)or3(minorstrength),andeachweakness
mustberatedasa1(majorweakness)or2(minorweakness).Furthermore,togetthe
weightedscore,theweightismultipliedbytherating.Finally,toachievetotalweighted
score,addalltheweightedscoreofeachfactor.ThecombinedweightedscoreforFords
IFEis2.66.Fordspointismarginallyabovetheaveragepositionof2.5
Fordbeingoneofthelargestautomobilecompaniesintheworldhasalreadybuilt
astrongbrandimageinthisindustry.StrongestfactorthatcontributedtomakeForda
wellknownautomotivemanufacturerisbeingeffectiveintheirinnovationdevelopment.
CustomersloyaltyisalsooneofthestrengthofFordbecauseitcontinuouslyimproves
their products and services. Retrenchment in Indonesia and Japan and unprofitable
operationsinEuropeareledtoalosstoFord.Inordertorecovertheselosses,Fordmust
not stop to develop and penetrate market to new geographical areas. High quality
productsmeanshighprices,so,improvingthecoststructureofFordmaybedifficult.The
onlywaythatfordcanimproveit,istominimizethespendingandatthesametime
maximizetheproductionefficiency,tocreatemoreprofit.
IX.
STRATEGYFORMULATION
A.
TOWSMatrix
Strengths
Opportunities
Threats
Weakness
(1) Ford should take into
consideration the marketing
of its products and services
affecting different categories
of investments. (W5,O2, O3)
(2) Ford must associate with
other companies to expand its
enhancement, production, and
marketing capacities, and also
its capital. (W2,O4)
The SWOT Matrix is an essential matching tool that uses factors from both the Internal
Factor Evaluation (IFE) and the External Factor Evaluation (EFE) to evaluate both
internal and external aspects of doing business. SWOT is the first stage of planning and
supports decision makers to concentrate on key matters. It is a graphical depiction of the
SWOT framework. It develops four types of strategies: SO (strengths-opportunities)
Strategies, WO (weakness-opportunities) Strategies, ST (strengths-threats) Strategies, and
WT (weakness-threats) Strategies. Strengths and weaknesses are taken from the IFE
while opportunities and threats are taken from the EFE. From there, we can come up four
different types of strategies by matching together the different internal and external
factors.
SO Strategies chase opportunities that are appropriate to the companys strength. Our
group suggests that Ford must take advantage the weaknesses of other automotive
companies to improve its strength. Such as the recent news about Mitsubishis sudden
acceleration issue, Ford may promote vehicles free of sudden unintended acceleration
risk through developing testing and evaluating their acceleration system. Also, Ford
having a strong brand image, will help them to outsource products and services in
countries that have high demands in acquiring cars in which a market penetration would
be another striking SO strategy.
WO Strategies are ones that aim at overcoming weaknesses by taking advantage of
external opportunities. The two WO Strategies are seen as intensive strategies. Regarding
the defective airbag inflator issue, associating with other company like Cisco, would
decrease the chance of defective products and enhance more of its technology. In this
case, product development can be attractive in this strategy.
In addition, further
investments will improve Ford to expand its production and marketing capacities.
Moreover, Ford should take into consideration the marketing of its products and services
answer and defend their company. In a world that change is the only constant, it is
essential that SWOT Matrix should frequently be examined and improved.
B.
SPACEMatrix
InternalStrategicPosition
FinancialStrength(FS)
AssetTurnover
CashFlow
ReceivablesTurnover
ReturnonInvestment
InventoryTurnover
ReturnonAsset
WorkingCapital
TOTAL
AVERAGE
CompetitiveAdvantage
(CA)
MarketShare
ProductQuality
Brand&Image
ProductLifeCycle
CustomerLoyalty
TOTAL
AVERAGE
ExternalStrategicPosition
Ratin
g
+2
+3
+3
+2
EnvironmentalStability(ES)
InflationRate
Taxation
TechnologicalChanges
BarrierstoEntry
+2
Pricerangeofcompeting
products
+1
CompetitivePressure
Ratin
g
3
4
1
1
1
3
+3
+18
13
+2.57
2.17
IndustryStrength(IS)
GrowthPotential
+4
ProfitPotential
+4
FinancialStability
+3
ResourceUtilization
+6
EaseofEntryintoMarket
+6
+23
1.2
+4.6
FS
CA
IS
ES
Conclusion
DirectionalVectorCoordinates:
xaxis:1.20+(+4.60)=+3.40
yaxis:2.17+(+2.57)=+.40
AsshownintheMatrix,FordMotorCompanyshouldpursueAggressive
Strategies. Ford should continue to develop its market by expanding to different
countries, thus, will help in improving Fords market share. They must continually
improvetheirproductsordevelopnewproducts.
C.
IEMatrix
IFESCORE
STRONG
4
AVERAGE
3
WEAK
2
1
4
HIGH
3
EFESCORE
MEDIUM
2
LOW
The InternalExternal (I/E) Matrix uses both the IFE and EFE total weighted
scores.ThistoolisusedtoexamineworkingsituationsandstrategicpositionofFord.The
weightedscoresaretakendirectlyfromtheIFEandEFE.TheIFEtotalweightedscoreis
plottedonthexaxiswhichis2.66,whiletheEFEtotalweightedscoreplottedonthey
axisis2.21.Therefore,theplotonthematrixwouldbe(2.66,2.21).Tounderstandthis,
with2.66astheirIFEtotalweightedscore,Fordisconsideredaverageinternalposition
becauseit is betweenscore of2.0to2.99.Inaddition,with2.21as theirEFE total
weightedscore,Fordisconsideredmedium,betweenascoreof2.0to2.99.
FordMotorsInternalExternalMatrix(IE)showsthatweareinholdandmaintain
strategy.TheIFEis2.66whichliein5thboxandEFEis2.21whichalsolieinthesame
box.
HoldandMaintainstrategiesare
MarketPenetration
ProductDevelopment
MarketDevelopment
Ford Motor Company has global operations, which meansthat market
developmentisnotassignificantasithasbeenforthebusinessinitsearlyyears. But
Ford should still expand insmall and medium countries orentering new markets or
marketsegmentsinplacesthathavestrongdesiretobuyautomobile.Thisexpansionwill
powerthecompanysOneFordglobalportfolioandaimsgrowthopportunitiesforsmall,
midsizeandlargevehicles.Developnewproductsorimproveexistingproductsthatoffer
superiormodification,uniquedesignandadvancedtechnologies.Fordplanstoaccelerate
obtainabilityofinnovativetechnologiesthereaswell,includingEcoBoostengines,Sync
incarconnectivityandinflatablerearsafetybelts.Fordexperiencedslowmarketgrowth
inEuropeanddownfallinitsmarketshareinsomecountriesinAsia.Fordmustpenetrate
moremarketsincethisisfordsmainintensivegrowthstrategy.Itinvolvessellingmore
productstoexistingcustomerstogrowbusiness,increasethemarketshareofacurrent
productorpromotemorenewproduct,throughadvertising,volumediscountsorlower
prices.ThisschemeisassociatedtoFordscommoncompetitivestrategybyemphasizing
thebenefitsoflowcostsandincreasingdiversitytogainabiggermarketshare.
D.
BCGMatrix
RelativeMarketShare
Hoch
Low
STARS
Niedrig
QUESTIONMARKS
SA
NA
AP
EU
MEA
In
d
u
st
ry
G
r
o
w
CASHCOWS
Operating
Segments
DOGS
Revenue
2014(in
millions)
%Revenue
Income
%Income
Relative
Market
Share
Industry
GrowthRate
North
America
$82,376
61%
$6,898
132%
14.2%
5.8%
South
America
8,799
6%
(1,162)
22%
8.9%
9.4%
Europa
29,475
22%
(1,062)
20%
7.2%
6.3%
MiddleEast
&Africa
4,406
3%
(20)
0.4%
4.7%
5%
AsiaPacific
10,744
8%
589
11%
3.5%
7.9%
TOTAL
135,800
100%
5,243
100%
Asshowninthematrix,AsiaPacificisaquestionmarkbecauseeventhoughthey
generaterevenueandhavemanagestogainprofit,theAsiaPacificsegmentcompeteina
veryhighgrowthindustry.ThisjustmeansthattheautomotiveindustryinAsiaPacificis
a very competitive industry. To improve this, the segment should pursue intensive
strategies like market penetration, market development, or product development; or
divesture.
MiddleEast&Africasegment,however,hasthelowestrevenuegenerationand
hasalsoincurredanegativeprofit.Italsohasalowmarketsharebuttheautomotive
industryinMiddleEast&Africaisahighgrowthindustry.
Meanwhile, North America, South America, and Europe are all stars. North
AmericaSegmenthasthehighestrevenueandprofit.Italsohasahighrelativemarket
shareandiscompetinginahighgrowthindustry.WhileSouthAmericaandEuropehave
notbeenprofitable,theystillmanagetogeneratehighrevenuesandhavehighmarket
sharesandarealsocompetinginahighgrowthindustry.Tostrengthenthesegmentsthey
should purse strategies like forward, backward, horizontal integration; market
penetration;marketdevelopment;andproductdevelopment.
E.
GrandStrategyMatrix
Rapid Market
Growth
QuadrantII
Wea
k
Com
petit
ive
Posi
tion
QuadrantI
Slow Market
Growth
Stro
ng
Com
petit
ive
Posi
tion
QuadrantIII
QuadrantIV
SummaryofStrategyFormulationTools
Strategies
SPACE
IE
BCG
GRAN
D
Backward,forward,horizontal
integration
MarketPenetration
MarketDevelopment
ProductDevelopment
Diversification(related/unrelated)
Divestiture
Total
2
3
1
Liquidation
X.
QUANTITAIVESTRATEGICPLANNINGMATRIX(QSPM)
XI.
OBJECTIVES,STRATEGYRECOMMENDATION,ANDACTIONPLANS
XII.
STRATEGYEVALUATION,MONITORING,ANDCONTROL
XIII.
FINANCIALPROJECTIONS
REFERENCES
APPENDIX